Top seven questions relating to Intelligent Finance transfer of equity
- I am in the market for an affordable conveyancing solicitor to help me sell in a transfer of equity and remortgage with Intelligent Finance. I I am fearful of by bill escalating out of control and there are various conveyancing solicitors who do transfer of equity conveyancing to pick from...how do I know which one is best appoint?
- Is it sensible to stop my mortgage payments with Intelligent Finance once a date for my remortgage and transfer of equity has been agreed?
- I am am in need of a conveyancer to deal with my transfer of equity. Intelligent Finance have been approached for a remortgage. I thought of asking my mortgage broker. I am lead to believe he will likely get a referral fee for recommending someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?
- What is the process for having a person removed from the title documents to a property if the mortgage is with Intelligent Finance
- What if my application doesn't meet Intelligent Finance lending criteria for a transfer of equity?
- Me and a friend got a joint mortgage with Intelligent Finance on a property in 2013. I am now looking to get a flat by myself and my friend would like to buy me out. Once we have agreed a figure where do we go? Is there likely to be any concerns with Intelligent Finance with him being on the hook for the total loan rather than only part of it?
- I purchased a property with my brother in 2010 Since then, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Intelligent Finance mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
Sample of information requested in a lawyer form relating to Intelligent Finance Transfer of Equity
Please give the name(s) and addresse(s) of those who jointly own the property with you?
Who will be responsible for the costs of the Transfer of Equity?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure
Please provide a copy of your National Insurance Number?
Information to consider in supplemental the above Intelligent Finance transfer of equity Info :
Tax and Legal
There may be various tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Intelligent Finance conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.
If the transfer of equity is made as a result of an Order of the Court, then Insolvency Indemnity Insurance is not required. In other situations, where a property is being transferred at less than market value between joint owners, an Insolvency Act Indemnity Insurance policy may be required. This is something that that your conveyancer will check with Intelligent Finance This is because, if the outgoing party is made bankrupt in the future, their Trustee in Bankruptcy could argue that they had transferred the property in order to avoid their creditors and apply to the Court to have the transaction set aside. If this happens, it could affect your lender or a future buyer from you as they would lose the property and the lender may not get back
what they have loaned to you. The Insolvency Act Indemnity Insurance policy only protects
lenders such as Intelligent Finance or future buyers from you. If there is no mortgage and the outgoing owner is made bankrupt, there is a risk to you that you could lose your home if the transfer is set aside. The cost of the Insolvency Act Indemnity Insurance policy varies based on the market value of the property at the conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Intelligent Finance your property may be repossessed.
Preparing the Transfer of Equity with a Intelligent Finance Mortgage
When it comes to preparing the the Land Registry documents your conveyancer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.
If Intelligent Finance is joining in the transfer to release someone from liability, put the release in the ‘additional provisions’ panel if someone is entering into a covenant relating to the charge, place it in the ‘additional provisions’ panel stamp duty land tax is not payable when there is no chargeable consideration for the transfer (Schedule 3, paragraph 1 of the Finance Act 2003). In the case of a transfer subject to a charge (even if the transfer is by way of gift) or if a property has been transferred for no value and there is an associated discharge, HMRC would view this as an assumption of an existing debt by the purchaser (Schedule 4, paragraph 8 of the Finance Act 2003) and stamp duty land tax may be payable
if you wish you may state in the ‘additional provisions’ panel that ‘This transfer is made subject to a charge dated… in favour of…’
On form AP1, your conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information contained within this webpage is for general information and only applies to England and Wales. It does not constitute advice for members of the public who should contact their lawyer,mortgage broker, insurer and accountant for specific advice relating to transfer of equity. Whilst we endeavour to keep the information up to date and correct we do not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.